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प्रश्न
Give the necessary Journal entries for the following transactions on dissolution of the firm of Sonu and Monu on 31st March, 2021, after transfer of various assets (other than cash and bank balance) and the third party liabilities to Realisation Account. They shared profits and losses in the ratio of 2 : 1.
- Sonu agreed to take over the firm's goodwill (not recorded in the books of the firm) at a valuation of ₹ 40,000.
- Bills payable of ₹ 30,000 falling due on 30th April, 2021 were discharged at ₹ 29,550.
- Stock worth ₹ 8,00,000 was taken over by partner, Sonu at 10% discount.
- Creditors off ₹ 2,00,000 accepted machinery valued at ₹ 2,20,000 in full settlement of their claim.
- Expenses of realisation ₹ 10,000 were paid by partner, Sonu.
उत्तर
| In the books of Sonu and Monu Journal Entries |
||||
| Date | Particulars | L.F. | Amount Dr. (₹) |
Amount Cr. (₹) |
| i. | Sonu's Capital A/c ...Dr. | 40,000 | - | |
| To Realisation A/c | - | 40,000 | ||
| (Being unrecorded goodwill taken over by Sonu) |
||||
| ii. | Realisation A/c ...Dr. | 29,550 | - | |
| To Cash A/c | - | 29,550 | ||
| (Being B/P discharged) | ||||
| iii. | Sonu's Capital A/c ...Dr. | 7,20,000 | - | |
| To Realisation A/c | - | 7,20,000 | ||
| (Being stock taken over by Sonu) | ||||
| iv. | No Entry | |||
| v. | Realisation A/c ...Dr. | 10,000 | - | |
| To Sonu's capital A/c | - | 10,000 | ||
| (Being realisation exp. paid by a partner) | ||||
APPEARS IN
संबंधित प्रश्न
Chopra, Shah and Patel were partners sharing profits in the ratio of 3:2:1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.
You are required to complete the below give accounts by posting correct amounts
| Realisation Account | |||
| Dr. | Cr. | ||
| Particulars |
Amount Rs |
Particulars |
Amount Rs |
| To Plant and Machinery | 1,60,000 | By Sundry Creditors | 1,50,000 |
| To Stock | 1,50,000 | By Mrs. Chopra Loan | 1,30,000 |
| To Sundry Debtors | 2,00,000 | By Repairs and Renewals Reserve | 12,000 |
| To Prepaid Insurance | 4,000 | By Provision for Bad debts | 10,000 |
| To Investment | 30,000 | By Cash A/c – (Assets sold) | |
| To Chopra’s Capital A/c (Mrs. Chopra’s Loan) |
1,30,000 | Plant 1,20,000 | |
| To Cash A/c (Dishonored Bill) | 50,000 | Stock 1,20,000 | |
| To Cash (Creditors) | 1,50,000 | Debtors 1,60,000 | 3,80,000 |
| To Cash (Expenses) | 8,000 | By Chopra’s Capital A/c (Investment) |
20,000 |
| ----------------- | ------- | ||
| 8,82,000 | 8,82,000 | ||
| Capital Account | |||||||
| Dr. | Cr. | ||||||
| Particulars |
Chopra Rs |
Shah Rs |
Patel Rs |
Particulars |
Chopra Rs |
Shah Rs |
Patel Rs |
| To Realisation | 20,000 | ----- | ------ | By bal b/d | |||
| -------- | -------- | -------- | -------- | By Realisation (Loan) |
1,30,000 | ||
| -------- | -------- | -------- | -------- | ------------- | -------- | -------- | -------- |
| 2,30,000 | 1,50,000 | 30,000 | 2,30,000 | 1,50,000 | 30,000 | ||
| Cash Account | |||
| Dr. | Cr. | ||
| Particulars |
Amount Rs |
Particulars |
Amount Rs |
| --------------- | -------- | By Realisation A/c (Dishonored Bill) |
50,000 |
| --------------- | -------- | By Realisation (Sundry Creditors) | 1,50,000 |
| To Patel’s Capital A/c | 10,000 | --------------- | -------- |
| By Chopra’s Capital A/c | 1,20,000 | ||
| By Shah’s Capital A/c | 90,000 | ||
| 4,18,000 | 4,18,000 | ||
Jayant and Ramakant were partners in the firm. On 31st March 2013 their Balance Sheet was as follows:
| Balance Sheet of Jayant and Ramakant as on 31st March 2013 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|
Creditors Workman Compensation Fund Satya’s Current Account Capital's: Jayant Ramaknat |
75,000 45,000 15,000
|
Bank Debtors Stock Furniture Machinery Shanti’s Current Account |
70,000 2,00,000 20,000 20,000 3,12,000 13,000 |
|
|
6,35,000 |
|
6,35,000 |
On the above date the firm was dissolved:
1. Jayant took over 40% of the stock at 20% less than its book value and the remaining stock was sold for Rs 15,000. Furniture realized Rs 20,000.
2. An unrecorded asset was sold for Rs 3,000. Machinery was sold at a loss of Rs 75,000.
3. Debtors realized Rs 10,000.
4. There was an outstanding bill for repairs for which Rs 38,000 were paid.
Prepare Realisation Account
Kumar and Gaurav were partners in the firm in a sharing profit in the ratio of their capitals. On 31st March 2013 their Balance Sheet was as follows:
| Balance Sheet of Kumar and Gaurav as on 31st March 2013 | |||
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Workman Compensation Fund Satya’s Current Account Capital’s: Kumar 1,50,000 Gaurav 1,00,000 |
80,000 25,000 24,000
2,50,000 |
Bank Debtors Stock Machinery Shanti’s Current Account
|
79,000 1,70,000 34,000 79,000 17,000
|
|
|
3,79,000 |
3,79,000 | |
On the above date the firm was dissolved:
1. Kumar took over 50% of stock at 10% less than its book value. The remaining stock was sold for Rs 10,000.
2. Debtors were realized at a discount of 5%.
3. An unrecorded asset was sold for Rs 9,000 and machinery was sold for Rs 18,000.
4. Creditors were paid in full.
5. There was an outstanding bill for repairs for amounting to Rs 14,000 which was settled at Rs 12,000.
Prepare Realisation Account
Sita and Gita were partners sharing profits and losses in the ratio of 4 : 5. They dissolved their partnership on 31st March, 2021, when their Balance Sheet showed the following balances:
| Particulars | (₹) |
| Sita’s Capital | 30,000 |
| Gita’s Capital | 35,000 |
| Gita’s Current A/c (Dr) | 2,000 |
| Contingency Reserve | 18,000 |
| P/L A/c (Dr) | 4,500 |
On the date of dissolution:
- The firm, upon realisation of assets and settlement of liabilities, made a profit of ₹ 9,000.
- Gita paid the realisation expenses of ₹ 2,000.
- Gita discharged the outstanding salary of the manager of the firm of ₹ 1,000 which was unrecorded in the books.
You are required to prepare the Partners’ Capital Accounts.
Who is called Insolvent person?
In what proportion is the balance on Realisation Account transferred to Partner's Capital Account?
Consider the following statements
Statement 1: "On dissolution Bank Overdraft is transferred to Realisation Account."
Statement 2: lt is shown on the credit side of Bank Account.
On taking responsibility for payment of a liability of ₹ 50,000 by a partner, the account credited will be:
The partnership may come to an end due to the:
At the time of dissolution of partnership firm, the amount of 'Bills Payable' shown in the Liabilities Side of the Balance Sheet is transferred to:
Pick the odd one out:
If goodwill is already appearing in the books of accounts at the time of retirement of a partner, then it should be written off in ______.
Anu, Bhanu and Charu were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Anu decided to retire from the firm on 31st March, 2021. The balance sheet of the firm on that date was as follows:
| Balance sheet of Anu, Bhanu and Charu as on 31st March, 2021: |
|||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Creditors | 24,000 | Bank | 10,000 | ||
| Profit & Loss A/c | 5,000 | Debtors | 20,000 | 19,600 | |
| Capitals: | Less: Provision for Doubtful debts |
400 | |||
| Anu | 31,000 | 83,000 | Stock | 27,000 | |
| Bhanu | 30,000 | Investments | 10,000 | ||
| Charu | 22,000 | Patents | 2,400 | ||
| Premises | 43,000 | ||||
| 1,12,000 | 1,12,000 | ||||
On retirement of Anu, following terms were agreed upon:
- Anu sold her share of premium for goodwill to Bhanu for ₹ 6,000 and to Charu for ₹ 3,000.
- Provision for doubtful debts was to be raised to 5% on debtors.
- Patents were considered valueless.
- Anu was paid ₹ 9,600 through a cheque and balance was transferred to her Loan A/c.
Prepare Revaluation Account and Anu's Capital Account on her retirement.
T, U and V were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. Their firm was incurring huge losses thus it had to be closed. After transferring assets (other than cash in hand and bank) and third party liabilities to Realization Account the following transactions took place:
- T took away 50% of the stock at book value less 10% for ₹ 90,000, and the remaining stock was sold for ₹ 40,000.
- Creditors of ₹ 78,000 took over machinery of ₹ 80,000 in full settlement of their claim.
- ₹ 5,000 debtors previously written off were recovered.
- Mrs. V's loan of ₹ 72,000 was paid by the firm.
- Loss on dissolution was ₹ 80,000.
Pass necessary journal entries for the above transactions in the book of T. U and V.
G and M were partners in a firm sharing profits and losses in the ratio of 3 : 2. on 31st March 2022, their balance sheet was as follows:
| Balance Sheet of G and M as on 31st March, 2022 | ||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) |
| Creditors | 50,000 | Bank | 75,000 | |
| Outstanding Expenses | 45,000 | Other Current Assets | 4,80,000 | |
| Provision for Doubtful Debts | 5,000 | Machinery | 7,00,000 | |
| 9% Loan | 15,00,000 | Land and Building | 15,00,000 | |
| Capitals: | Patents | 10,000 | ||
| G | 6,00,000 | Profit and Loss Account | 15,000 | |
| M | 7,00,000 | Goodwill | 1,20,000 | |
| Total | 29,00,000 | Total | 29,00,000 | |
On the above date, the firm was dissolved. Other current assets realised 10% less. Land and building and machinery were sold at their book value. 9% loan was discharged with unrecorded interest of ₹1,35,000. Expenses on dissolution amounted to ₹10,000.
Prepare Realisation Account.
On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be transferred to which of the following account?
On the dissolution of the firm, Partner Rex agreed to take over the responsibility of completing the dissolution work at an agreed remuneration of ₹ 1000 and to bear all realisation expenses. The actual realisation expenses amounted to ₹ 1,300 which were paid by the firm on Rex's behalf.
What amount will be debited by the firm to the Realisation Account?
